27th May 2016 06:36
LONDON (Alliance News) - Defence contractor Ultra Electronics Holdings PLC on Friday said it has agreed a deal to sell its ID business to private equity house LDC.
Ultra will sell the business, which designs and manufactures card printers and associated products, for an initial GBP22.0 million in cash, with a further GBP3.0 million due based on earnings growth over the next two years.
In the year to the end of December, the ID business made an operating profit of GBP4.0 million on revenue of GBP19.3 million.
"Ultra ID is a sound and profitable business, but one that has become non-core to Ultra's consolidated portfolio and future plans. This first significant divestment by Ultra will allow greater focus on core businesses and longer-term strategy," said Chief Executive Rakesh Sharma.
By Sam Unsted; [email protected]; @SamUAtAlliance
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